Why really pay for anything ? is the web really free?

Posted by Hans Helbig on 30 June 2009

Chris Anderson of The Long Tail fame has just launched his latest review of the digital world; Free – the future of a radical price.  It takes a look at the ‘Free’ attitude we have towards content and ‘stuff’, all caused by the web. I haven’t read the book yet, but feel it might be a bit of a management text book overhype/also ran.   It’s an interesting area, but not an earth shattering concept…the free/paid struggle on the net is something the industry lives with all and every day.

Let’s face it; the ‘plight’ of the music industry is old hat.  File sharing has been around since the beginning of the web, some ‘free’ sites are heavily subsidised by a bigger profitable brother (read YouTube et al) and rogue websites selling cheaper products are popping up and being closed down all over the place.  All of these provide free or cheaper products and as a result or time and people getting used to it, this is now ingrained in a user experience.  It’s a business condition. 

In reality though, each instance does have a cost.  It might not necessarily be attributed directly to the user, but there is a cost nonetheless.  Ad funded to support ‘free’ content has been the model of the TV stations and newspapers for longer than most of us have been alive.  The music industry is no different; the songs are now ads for concerts, public appearances, endorsements (all massively increased and highly lucrative) and record sales.  ‘Free’ applications use different cost models too; some, like Google Mail have user limits and advertising, some use open source to fund development – i.e. people enjoying doing stuff for others for ‘free’. 

Some sites provide free information about things to encourage a ‘retail’ sale which is viewed by non-transactional customers; travel sites for example. Some sites simply charge, with cost models operating from the ridiculously cheap to the full charge with associated benefits.

This idea of instant gratification without cost is nonsense, and we all know it.  If it weren’t, the commercial world would cease to be, on or offline.  Yet there will always be people selling fake goods at the market and still the world does business.   We are in slightly new territory with a lot of these virtual concepts, and a lot of the business models themselves need to prove their sustainability, but that’s nothing new for a market segment.

The bottom line is that the web is not free, and there are a myriad number of payment mechanics cursing through its veins, we just don’t always perceive them.  Sure you can get by on free stuff, but if you are a serious player you will eventually need to upgrade and most of the time getting a decent content management system for example is worth much more to your customer than the set up cost is to you.  The real win is that with all the variable options for your infrastructure, your costs will remain flexible and that’s a massive advantage.  That’s the beauty of the web, all of these options exist, you know about them and it’s only because of the web that some of these options are possible.  It’s simply a case that your business choices are freer than ever before and that brings your costs down.

As to Chris’ book, save yourself the cover price, read the reviews and excerpts online for free.

It's not just about the content, but how you position it.

Posted by Hans Helbig on 29 June 2009

Users think data is a free commodity. It's the Internet, that's the way it works. End of. It really is that simple in their eyes. The truth is that it just isn't that simple any more; costs for running sites at scale are prohibitive. The economic climate has put an end to cheap cash and riding the wave of never-never profits. Businesses have to make money and content has to be of good quality to drive this. It's what economists call 'legitimacy', something evaluated in terms of 'effectiveness', and that means it all needs to make a viable return.

The first thing to consider is that you are not alone; the web is a big place and if people don't like your offering they will go elsewhere. The web is a breeding ground for new ideas, concepts and usurpers who will steal your thunder at flip of an IP.

There are also people out there who have different motives to you, as well as there being a lucky few who don't need the money at all. Look at Wikipedia and BBC Online. Neither of which I want to see go, both of which have independent models of existence. I – as many millions of people around the world – love these sites.

The point here is to be aware of these factors and look at a realistic solution to sit at the core of what you do. Be clear on this and then consider some of the following:

1.     Choose a position, have an opinion and be honest. Provide an honest service, charge with clear benefits, but don't discourage use at any level

2.     Give a 'Free' option that lets people explore with some key limitations that you save for the preserve of your subscriber. Free options build brands and create future users, don' talk to them any differently and don't be condescending. For example give a usable bandwidth allowance or server ads only on every other page. Consider using the freemium model proving successful around the globe.

3.     New charging models: Look at new ways of doing things, good example in what people thought were hopeless markets are Spotify and LoveFILM. Look at micropayments, bundles and good old fashioned sales techniques.

4.     Sell advertising if it works, it works

People pay for content that has a) a tangible benefit, and that is b) easier to use than getting the content from other sources. Be honest with an honest product (at all entry points). Find your cost efficiency and work it hard and well. Either that or build your model quickly and sell it for small fortune, then retire to a tropical island and drink cocktails and let someone else worry about it.

Some freemium sites I love:

www.yousendit.com use it with impunity up until 100MB

www.spotify.com the way music needs to be online, with a very clear reason (with options) to upgrade

www.ft.com whatever you say them knows their onions

Microsites a discourse

Posted by Hans Helbig on 16 June 2009

Campaign Microsites, a discourse

They are everywhere and it seems everyone is at it.

Executives want some of it, and agencies are happy to peddle it with grandiose proclamations of untold users and clicks galore. The cost apparently – according to agencies and their clients – is 'missing out' and 'not being part of the digital revolution'. Newsflash: the revolution has happened and we are living in a fully mature market with highly experienced users.

Don't get me wrong, I am not having a go at campaigns, just the randomness of some of the big, pointless and expensive looking campaign microsites that seem to have been created to spend budget. Worst of all, they seem to be built without thought for any existing company websites or platforms. The following is what I always think about at the start of a new campaign.

• Integrate your activity to your existing portfolio
• Make sure whatever you do has a point or a purpose
• Don't ask your user for too much

Most people won't spend two hours in Photoshop to make an animated GIF about your product in a funny situation. Most will want instant gratification. If they are gratified, then they will want to keep or share it. So make sure the site has a critical mass of content to keep people engaged right from the beginning...make everything from the concept to entry quick, easy to use, easy to understand and to pass on

• Give it depth
• Keep it alive
• Only do it if it's a good idea

This final point is probably the most important for the client to remember; know what your objectives are, know what you want and above all don't be afraid to get creative. Look at all the options available to you; is there a way you can integrate your campaign into you existing site, with nice little ideas that carry the story through? Is this the point to add new customer focused functionality to your site, or improve the ecommerce conversion rates? Could you make CRM the core of the campaign and rebuild your platform and resource to support? Is the budget better off being spent on promotional pricing (BOGOF)?

I am genuinely never more disappointed than when I see a big corporation or agency ticking the box with a bland campaign site. They have talent, lots of cash and they know your customer, how hard can it be? You see we like the web and want stuff to be good...if you get stuck, give us a call.

Digital grows up

Posted by Hans Helbig on 16 June 2009

Digital Emancipation comes a step closer

This week, Crispin Porter & Bogusky – a huge global traditional ad agency – bought Daddy, the Swedish digital design hotshop, and put them in charge of their entire European operations. That's on and off line. To be really clear; a digital agency is now in charge of a large pan-European, globally owned ad agency and all it's clients. Brilliant.

Companies have for an age been talking about putting digital at the core of their operations, but very few have done anything about it really. Sure there were heads of online and digital directors, but most had an office in one of the side wings. Campaigns were produced 'afterward' by the comm's departments, or a small team at the back of the agency away from the core creatives. There is a definite air of them and us.

This is different: Heinz calls a campaign meeting and the first person to get the message is the digital guy. The digital guy likes and understands digital, so they start to think cross-channel ideas, not off line ideas that get shoehorned onto online. I like this a lot and feel like we are getting close to what we the digital agencies always knew was coming; we have been given the keys and asked to pick the direction. All in all, this means a digital growth spurt is on its way.

Here's to more digital good news stories.

Why Google continues to make me smile...

Posted by Ben Rometsch on 29 May 2009

Not only are they releaseing incredible looking software like Google Wave in an open source fashion, but their sign up page tickles me as a developer...

Social reform? Let me just put you on hold.

Posted by Hans Helbig on 27 May 2009

Hugo Chavez unveiled his latest in the line of quasi social revolutionary mechanics this week; a €15 WAP enabled phone for the people. A move that I think is very, very astute...well, at first I thought it was up there with beads and shiny mirrors.

...on reflection, it does seem to offer something for everyone;

The People:

Get a mobile phone with all the modern gadgets at a price that they can afford. This not only means instant gratification, but also learning and development. With technology come improvements in all areas; knowledge builds people. The phone itself is no iPhone or G1, but it delivers everything a contemporary society needs: a camera, WAP internet access, FM radio, MP3 for music and MP4 for video.

Hugo Chavez:

Show me the love. Just look at the reaction you would get from a teenager if you gave them an iPhone. He is now more than ever a benevolent leader who really cares about what we the people want (this is my shinny beads moment). He also now owns the channel and as Mr Berlusconi will tell you, that's not a bad thing. It's not just internally though, he is now seen as a progressionist and visionary across the globe (if more so in some places than others).

The State:

Socialism is good. Surely it can't be bad if I get a lovely phone out of it? Hugo is a man of the people and they won't forget that in a hurry. Just look a the reverse affect of the current expenses scandal. Who cares what our foreign policy is, just don't you dare charge me, the people, for your lovenest in Portsmouth and your bathplug. The next election/constitutional change is in the bag.

The economy:

The handsets themselves are being built locally, which means jobs, income with a price point that that corners the market. The $15 mobile has already got a massive waiting list. That's not even thinking about the network infrastructure, the channel and the revenue through usage. Venezuela now becomes a centre for mobile technology excellence in South America and the socialist world, which means outside interest (read cash and status), improved foreign relationships and knowledge sharing...a nice, premium export.

Businesses:

Someone has to build the WAP sites and propagate the content. Hugo isn't going to stop at the phone, he needs an active channel. So, from ring tones to information portals, it all needs to be built or re-built. And as soon as the money comes rolling in, so will the next gen.

As if all of this isn't enough, give the man his PR credit; the phone's name – Vergatario – is very close to the Venezuelan slang word for penis – Verga. Two stories for the price of one all delivered with a smile – happy and good news, the best kind.

Our advice is that if you have any South American connections, experience in mobile and a head for adventure give Hugo a call.

Mobile web, social reform in the palm of your hand.

Posted by Hans Helbig on 27 May 2009

If the pundits are anything to go by, this is the year of mobile web. It's boom time apparently...again. I have been hearing this statement for years; I started out developing mobile products at Hutchison for their global 3G offering that no one ended up using; there were loads of world firsts that were technically brilliant, offering everything from a 'mobile wallet' to live video streams, most of which were financially viable...all of this way ahead of it's time if I look at current mobile services. It boils down to 3 key problems; users didn't emotionally know what we were talking about, so no one was talking about any of it, the hardware was ugly, and there were no services that needed a mobile version to make them complete.

The demand for ideas from our clients hasn't stopped over the years either and Solid State Group have pulled together a number of products including mobile SuDoku games for Ericsson and Yahoo!, supporting mobile billing and ticketing platforms, flash prototypes and a host of back end systems to support our existing product portfolio. So the basics are built and understood and we kind of knew they were important, it's just we were waiting for something to change in the minds of the users.

Now the numbers seem to be adding up to this change being in motion. More importantly consumers are reacting, the terminology and technology has become social currency; just look at the runaway success of the iPhone (apart from India), it has pretty much caused a social revolution in what we want from our devices. Android versus mobile OSX, and the social misfit Windows Mobile. They are all terms normal people are using everyday...and that's all before we mention the digital drug of our time that will be the catalyst; social networking. Britain also appears to be the world leader in mobile web usage, with figures of around 7.3 million users in the Q3 2008 (Neilson Online). In summary then, we have the customers, we have the channel (hardware) and we have the knowledge to deliver it without compromise.

In comparative terms though, I doubt that there are many companies who are actually doing anything specifically aimed at these users. And the first step is the easy one; Acknowledgment. Be aware how consumers are interacting with your brand and services.

Once you know this, just answer the following questions in order and add them to your next briefing session:

Q1. Why are people using mobile web when looking at our site?

Q2. What are they specifically looking for and asking, and how does it differ from traditional web usage?

The answers to both of these depend on what products you offer and what part of that the consumer want from you when they are out and about? Social sites for example will want the usual raft of updates and posts 'straight to gallery' functionality - updates. Offering this with a paired down bespoke mobile site to speed things up of course. The same for directories, with tweaked algorithms to make the returns more relevant, think nearest pub, cinema times, etc.

These minimised services need to reflect the second question, but don't rush in and dismiss the idea that a lot of sites are fine as they are...well, that your users are happy with the service as it stands without the need for a full redesign or a different experience just because they are out. All of this takes us right back to the simple rule of acknowledgment; look at your customer and understand what they want. We know how it works, we have the ideas, and most importantly we have the learnings from the early days.

So, roll on the new iPhone, the N97, Blackberry minus the suit and watch the social reform unfold...I know that might sound a little strong, but just take a look at Hugo Chavez and his new $15 WAP enabled peoples handset.

solidstategroup.com (#ssg) twitter integration

Posted by Matthew Evans on 27 May 2009

So twitter is going to be integrated into the new solidstategroup.com website and we had quite a long discussion about the best way to do this. We first thought about simply having a corporate twitter account and if we want something to go out on twitter we would post it through that account. We tried this approach for a while and basically no-one can actually be bothered to switch accounts to put out a tweet from SSG.

So now we have taken a new approach of simply adding the #ssg tag to any post that we want to appear on the twitter page on our new site. The advantage (and disadvantage) of this is that anyone using twitter can use the #ssg tag for whatever purpose they see fit, and when they do, those tweets will appear on our site.

To combat this we are going to block known twitter users that use an alternative definition of #ssg (there is someone using it for some Star Wars gaming purpose a little) so that there is less noise in the channel

One of the downsides though is that users of the site won’t be able to follow just one user, they would need to follow all the users that post to our site, or keep searching for the #ssg tag which is a pain.

So we’ve come up with a cunning plan. You can do a targeted search in twitter for a tag and a user like this:

Then you can view this feed as an RSS feed through the RSS tools pictured on the right hand side of that image.

Once you have this RSS feed, you can use tools like tweetbots.com to automatically tweet posts in an RSS feed, therefore retweeting anything I tweet from my personal account into our SSG account.

Now users can follow just the SSG account and will get all the tweets from our personal accounts with the #ssg tag, but nothing from external users using the #ssg tag. External users tweeting with that tag will however show up on our twitter page on our site (provided they haven’t been blocked by our known #ssg tag abusers ;-) )

So we should get the best of both worlds. Incidentally, this blog post will be auto tweeted using the same bot type tools so it’s always good to have the #ssg tag in the title.

Thanks to @joelangford for the research. :)